Central Oregon cannabis producers, retailers and manufacturers are hopeful that the U.S. Drug Enforcement Administration’s move to change the classification of cannabis to a less dangerous drug category will ease federal restrictions on their industry.

When the DEA moves to reclassify cannabis from being listed among the most dangerous drugs like LSD, and places it with less-restricted drugs like ketamine and some anabolic steroids, some business growth restrictions would be eliminated.

Cannabis businesses would be able to deduct business expenses on their annual tax returns and medical research could be encouraged.

Before any actions can be taken, however, the White House Office of Management and Budget must first approve the change and then the DEA will take public comments.

“This would be game changing for the industry,” said Gary Bracelin, a founder of Tokyo Starfish, a cannabis company in Bend. “We would finally be able to operate like any normal business.”

Cannabis plays a role in the Central Oregon economy. In March, more than $4.2 million worth of cannabis products were sold, according to the Oregon Liquor & Cannabis Commission. Statewide the sales for March totaled $82.3 million worth of cannabis products.

Oregon’s cannabis industry sales peaked in 2021 at $1.2 billion in sales, but decreased to $994 million in 2022, according to a report to lawmakers in 2023. Last year, cannabis sales totaled $995 million, according to the OLCC website.

Cannabis is still a relatively new industry and subject to market ups and downs and over production, said Hunter Neubauer, founder of Oregrown Inc. Neubauer said he isn’t sure if the reclassification will help or hinder the industry.

As a grower and retailer of cannabis, Neubauer said if cannabis is reclassified, but still a controlled substance, the industry would continue as it has been — legal in states, but not on the federal level.

“It’s very exciting, but also very scary,” Neubauer said. “It also opens the door to the pharmaceutical industry that might try to take cannabis. And that is scary.”

Consumers of cannabis already know that there are medical benefits, and pharmaceutical companies might try to change the way consumers access cannabis, he said.

U.S. Sen. Ron Wyden, D-Ore, is hoping that the DEA’s actions are the first step toward completely removing cannabis from its restrictive classification.

“Rescheduling cannabis is a significant step toward leaving reefer madness behind and bringing federal cannabis policy into this century,” Wyden said. “It will finally mean tax equity for the cannabis businesses in our state — allowing them to finally deduct businesses expenses like every other business — and more medical research.

“While the administration’s move is significant, de-scheduling is ultimately what needs to happen to make sure people and businesses are no longer caught between state and federal laws.”

To begin that process, Wyden, and Sens. Charles Schumer, D-N.Y, and Cory Booker. D-N.J., reintroduced the Cannabis Administration and Opportunity Act in Congress on Wednesday. The legislation attempts to end federal cannabis prohibitions by removing it from the DEA’s Controlled Substances Act completely, empowers states to create their own cannabis laws, and allows for economic justice.

Jeremy Kwit, founder of Substance in Bend, saw the DEA’s action as aligning with what the American public already believes: Cannabis is not a dangerous drug.

“This means policy is finally aligned with the public and away from prohibitionist politics,” Kwit said. “It will reduce the stigma of cannabis.”